The design of a facile and scalable method to synthesize solar light driven photocatalyst to generate H-2 from water and degradation of toxic dyes from waste water is highly challenging field of research. Here, we are reporting a one pot synthesis of CdS/CdO colloidal nanocomposite with variable amount of CdS thickness and finally CdS nanoring. Different outward diffusion rate of oxygen and inward diffusion rate of sulphur ions generates hollow CdS/CdO nanocomposite based on nanoscale Kirkendall effect. Au nanoparticles (NPs) have been selectively deposited over CdS. Proper band alignment among CdO, CdS and Au results in a Z-type photocatalyst. Efficient spatial charge separation and large surface area lead to high photocatalytic dye degradation and Cr (VI) reduction in water. The amount of Cd in purified water is lesser than 0.003 ppm which maintains world Health Organization (WHO) guideline. The as developed catalyst is also active for generation of H-2 from water in presence of solar light irradiation. Our present work may provide a promising way to fabricate an efficient photocatalyst for dye degradation and solar to fuel energy conversion using semiconductor (CdO)semiconductor (CdS)-metal (Au) nanocomposite.